Nvidia (NASDAQ:NVDA) shares have experienced record-breaking gains over the past two years, largely driven by the explosive growth of AI. While the continued spread of AI seems to be a foregone conclusion, it is fair to wonder if the mega chipmaker can continue on its torrid climb.
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In 2024 alone, Nvidia stock has jumped 119%, but recently, it has lost some momentum, declining 20% from its peak in June.
Is this recent dip a sign that further losses are on the horizon? Not so fast, says JR Research, who believes that there are more gains ahead.
“I don’t consider NVDA overvalued when incorporating its growth prospects,” writes the 5-star investor, who is in the top 2% of TipRanks’ stock pros.
From an industry standpoint, JR Research does not believe that AI investments are going anywhere for the time being. Hyperscalers are itching to keep building out their NVDA-powered AI capabilities, and this “momentum is expected to continue.”
The investor adds that Nvidia’s rapid ascent in the AI sector is no coincidence, bolstered by its comprehensive full-stack ecosystem. With the new Blackwell architecture moving into full production, NVDA is well-situated going forward to “support AI-driven digital transformation projects.”
This creates an opportunity for investors to consider buying significant dips in NVDA stock, according to JR Research. In fact, the investor points to previous pullbacks in October 2023 and April 2024, which led to strong buying interest and subsequent rallies, maintaining Nvidia’s “incredible market outperformance.”
All in all, JR Research believes that “NVDA’s price action remains incredibly resilient, with no signs of a bull trap,” and therefore rates the stock as a Buy. (Click here to watch JR Research’s track record)
Wall Street analysts share a similar positive outlook, with 37 Buy ratings and only 4 Holds out of 41 recent assessments, classifying NVDA as a Strong Buy. The consensus 12-month price target of $142.74 suggests a potential upside of nearly 38%. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
